Mastercard (NYSE:MA) Shares Up 0.7% – Time to Buy?

Shares of Mastercard Incorporated (NYSE:MA) traded up 0.7% during trading on Wednesday . The company traded as high as $516.28 and last traded at $515.04. 428,347 shares traded hands during trading, a decline of 78% from the average session volume of 1,991,577 shares. The stock had previously closed at $511.40.

Wall Street Analysts Forecast Growth

MA has been the topic of several analyst reports. Piper Sandler reiterated an “overweight” rating and set a $575.00 price target (up previously from $565.00) on shares of Mastercard in a research note on Friday, November 15th. BMO Capital Markets boosted their price target on Mastercard from $550.00 to $565.00 and gave the company an “outperform” rating in a report on Thursday, November 14th. Deutsche Bank Aktiengesellschaft raised their price objective on Mastercard from $510.00 to $580.00 and gave the stock a “buy” rating in a research note on Friday, November 1st. Mizuho boosted their price objective on Mastercard from $496.00 to $532.00 and gave the company an “outperform” rating in a research note on Friday, November 1st. Finally, Citigroup lifted their price target on shares of Mastercard from $566.00 to $572.00 and gave the company a “buy” rating in a report on Monday, November 4th. Three equities research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Mastercard has an average rating of “Moderate Buy” and an average target price of $562.76.

Mastercard Price Performance

The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36. The company has a market capitalization of $472.53 billion, a PE ratio of 38.94, a price-to-earnings-growth ratio of 2.36 and a beta of 1.10. The stock’s 50-day moving average is $523.76 and its two-hundred day moving average is $491.10.

Mastercard (NYSE:MA) last posted its quarterly earnings data on Thursday, October 31st. The credit services provider reported $3.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.73 by $0.16. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The company had revenue of $7.37 billion during the quarter, compared to analysts’ expectations of $7.27 billion. During the same quarter in the previous year, the business earned $3.39 EPS. Mastercard’s revenue was up 12.8% compared to the same quarter last year. On average, equities analysts predict that Mastercard Incorporated will post 14.47 EPS for the current year.

Mastercard Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Thursday, January 9th will be paid a $0.76 dividend. This represents a $3.04 annualized dividend and a yield of 0.59%. The ex-dividend date is Friday, January 10th. This is an increase from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s dividend payout ratio (DPR) is currently 23.00%.

Mastercard announced that its board has initiated a stock repurchase plan on Tuesday, December 17th that authorizes the company to repurchase $12.00 billion in shares. This repurchase authorization authorizes the credit services provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Highline Wealth Partners LLC bought a new position in Mastercard in the third quarter worth approximately $25,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Mastercard during the second quarter worth $34,000. Fairway Wealth LLC purchased a new stake in Mastercard during the 2nd quarter valued at about $35,000. First Personal Financial Services acquired a new position in Mastercard in the 3rd quarter worth approximately $39,000. Finally, Lowe Wealth Advisors LLC increased its stake in shares of Mastercard by 74.0% in the third quarter. Lowe Wealth Advisors LLC now owns 87 shares of the credit services provider’s stock worth $43,000 after acquiring an additional 37 shares during the period. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Mastercard Company Profile

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.